About GST

About GST
Goods and Service Tax ─ GST is the biggest reform proposed in the Tax Regime of our country after Independence. It is something that each of us must understand as it is going to affect our lives in a very significant manner.
"Goods and Services Tax" would be a comprehensive Indirect Tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the Central and State governments .
GST will not levied in addition existing taxes rather it will be replaced by GST as single tax, Following taxes will be subsumed.

Central Surcharges and cesses that relates to supply of goods and service Tax

Statel Surcharges and cesses that relates to supply of goods and service Tax

HistoryIn 2000: NDA government set up a committee headed by Asim Dasgupta, for reform in Indian indirect tax system.In 2003: NDA government appointed kelkar committee recommends introduction of GST.In 2006-07: An announcement was made by P Chidambaram,FM, that GST would be introduced from April 1, 2010 .In 2007: Empowered Committee of State Finance Ministers decided to set up a Joint Working Group, with the Adviser to the Union Finance Minister and other.November 2007:The Joint Working Group, after intensive internal discussions as well as interaction with experts and representatives of Chambers of Commerce and Industry, submitted its report to the Empowered Committee.December 2008:The comments of the Government of India were received on December 12, 2008 and were duly considered by the Empowered Committee (December 16, 2008).March 2011: FM Pranab Mukherjee introduces Constitutional Amendment bill for GST.August 2013: Committee submit report but UPA II fails to evolve a consensus.May 2014: Bill lapses with dissolute on of 15th lok sabha.December 2014: NDA government introduces fresh Constitution Amendment bill.May 2015: Lok Sabha passed GST Constitutional Amendment Bill for GST.December 2015: NDA government unable pass GST Constitutional Amendment Bill in Rajya Sabha.01 April 2016: Earlier proposed date for Introduction of GST.22 July 2015: Select Committee of the Rajya Sabha submitted its report on the bill .03 August 2016: The bill was passed by the Rajya Sabha .08 August 2016: Amended bill was passed by the Lok Sabha on 8 August 201601 April 2017: New proposed date for Implementation to GST

Benefits of GST
GST has been envisaged as a more efficient tax system, neutral in its application and distributionally attractive. The advantages of GST are:
Wider tax base, necessary for lowering the tax rates and eliminating classification disputes
Elimination of multiplicity of taxes and their cascading effects
Rationalization of tax structure and simplification of compliance procedures
Harmonization of center and State tax administrations, which would reduce duplication and compliance costs
Automation of compliance procedures to reduce errors and increase efficiency

Draw backs of GST India
Doesn’t include petroleum and alcohol products. Heavy loss to the exchequer.
Instead of blurring out the difference between goods and services tax, it highlights them. An aam aadmi(common man) filing the tax-returns will have to suffer.
It requires strong IT (Information Technology) infrastructure at grass-root levels. India essentially lacks this. This factor is going to be the bottleneck, if not addressed well in advance.
Very high rates compared to current 12.5 % VAT.
Tax-sharing between states and the Centre was another bottleneck. Nice to see that there is a consensus now.

Rate of GST
The rate of GST is yet to be announced, and is currently being discussed in length by the Centre and the EC. The rate is expected to be in the range of 16% – 19 %. Once the total GST rate is determined, the states and the Centre have to agree on the CGST and SGST rates. Today, services are taxed at 14.5% and the combined incidence of indirect taxes on most goods is around 20%.